Meta has invested $36 billion in the metaverse, but plans to spend many billions more on the project.
Cautious investors are calling for Meta to focus its efforts on its profitable divisions.
Insider compiled a list of technological advances that cost much less than the metaverse.
The metaverse may be the most expensive project in the history of technology.
Meta, according to an Insider analysis of the company’s financial filings, has pumped $36 billion into its Reality Labs division since 2019.
Reality Labs is home to the social media giant’s metaverse and VR arms, and it remains hugely unprofitable, posting a $3.7 billion operating loss on revenue of $285 million in its most recent quarter, nearly half compared with the previous year.
The social media giant reported its second consecutive quarter of lower revenue this week, prompting some anxious investors to encourage Goal to refocus on your most trusted core businesses: ads and paid messaging.
However, Mark Zuckerberg is keep spilling billions in his dream of the metaverse, arguing that it is the future of computing.
Meta’s CEO said the company would lose a “significant amount” of money over a period of three to five years at this year’s shareholders’ meeting.
While Zuckerberg may believe that hemorrhaging cash is the metaverse’s path to success and profitability, Insider has put together this list of blockbuster tech innovations that cost only a fraction of what Meta has already spent. These figures have not been adjusted for inflation.
The iPhone, released in 2007, was in development for years at Apple, with some of the brightest engineering minds working on the device.
Reports vary as to how much Apple actually spent to create it. According to an anonymous senior executive, speaking in 2013, the iPhone it cost 150 million dollars to make.
That’s a low number: Tech publication The Information accounted for Apple’s research and development spending between 2002 and 2007, reach a figure of $3.4 billion.
Android, now the most popular mobile software in the world, started as an independent startup and initially had trouble getting cash Investor Insider previously reported that founder Andy Rubin received $10,000 and an additional, undisclosed amount of seed funding from famed technologist Steve Perlman to keep the company going.
Google in 2005 picked up Android for about $50 million. The first Android phone, the HTC Dream, was released in 2008. In that period, Google spent around $6.6 billion on research and development. annual performance show, although that would include areas beyond the Android operating system. There are now more than 3 billion active Android devices, according to Google, so Zuckerberg is far behind on his investment.
So far, fully autonomous cars are not widely available, despite major tech companies and startups pouring billions of dollars into their development.
Again, estimates here vary. McKinsey estimated in 2021 that investors had spent around $100 billion since 2010 developing core technologies for autonomous vehicles. such as radars and cameras and lidar. That tops the $36 billion Meta in the metaverse, but it’s over a considerably longer period.
By company, the estimates are more conservative and they are cheaper than Meta’s fledgling VR platform.
The New York Times in 2021, citing Pitchbook, suggests that specific companies will each spend up to $10 billion to put autonomous vehicles on the road. Information Dear that the total investment by companies to bring self-driving cars to market amounts to around $27 billion, including Waymo, Cruise, Motional, Zoox and Argo AI.
Microsoft debuted its first Xbox console in 2001 after investing (or losing) more than $4 billion in its development.
It took just 20 months from conception to launch, according to to Dean Takahashi, author of “Opening the Xbox: Inside Microsoft’s Plan to Unleash an Entertainment Revolution.”
The console is one of the best-selling game consoles of all time, and is approximately 14% market share worldwide.
Amazon Echo Speaker
Amazon lost hundreds of millions of dollars on its Echo device with Alexa before it launched in 2014, according to cabling.
Founder Jeff Bezos himself authorized the spending, met with the development team every other day, and helped make product decisions.
PlayStation is the most popular game console in the world, with more than 80% market share.
Its manufacturer, Sony, spends less than $5 billion on research and development, according to Guardian review, noting that the budget covers not only its consoles, but also its rival to Meta’s metaverse vision, PlayStation VR. And unlike Meta, Sony gets about a quarter of its revenue from its gaming division.
Read the original article at Business Insider